Correlation Between GMP Property and Banco Santander
Can any of the company-specific risk be diversified away by investing in both GMP Property and Banco Santander at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GMP Property and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMP Property SOCIMI and Banco Santander, you can compare the effects of market volatilities on GMP Property and Banco Santander and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GMP Property with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMP Property and Banco Santander.
Diversification Opportunities for GMP Property and Banco Santander
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GMP and Banco is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding GMP Property SOCIMI and Banco Santander in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander and GMP Property is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GMP Property SOCIMI are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander has no effect on the direction of GMP Property i.e., GMP Property and Banco Santander go up and down completely randomly.
Pair Corralation between GMP Property and Banco Santander
If you would invest 439.00 in Banco Santander on August 30, 2024 and sell it today you would lose (1.00) from holding Banco Santander or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GMP Property SOCIMI vs. Banco Santander
Performance |
| Timeline |
| GMP Property SOCIMI |
| Banco Santander |
GMP Property and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMP Property and Banco Santander
The main advantage of trading using opposite GMP Property and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMP Property position performs unexpectedly, Banco Santander can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Banco Santander will offset losses from the drop in Banco Santander's long position.| GMP Property vs. Elaia Investment Spain | GMP Property vs. Home Capital Rentals | GMP Property vs. Inhome Prime Properties | GMP Property vs. Energy Solar Tech |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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